The City has taken advantage of historically low interest rates to significantly reduce the borrowing costs on long-term debt. The savings from refinancing done over the last two fiscal years will total nearly $2.5 million.
Debt issued in 2000 for water improvements was refinanced last fiscal year from an interest rate of 5.06 percent to 1.56 percent, while debt issued in 2002 for sewer improvements was recently refinanced from an interest rate of 4.48 percent down to 2.03 percent. This will save the City $1.5 million over the life of the loans.
Debt that was issued in 2002 to fund the expansion of the police station was also recently refinanced, reducing the interest rate to 2.60 percent from 4.96 percent. Savings will total $989 thousand over the life of the debt.
These savings will provide funds for other operating or infrastructure needs. The City will continue to take advantage of refinancing opportunities wherever possible to reduce interest costs and find savings for taxpayers.